my 2 oldest kids put their allowances in a jar togather,and they use that money to buy presents for the family and each other.

My boys get an allowance based upon their behaviour during the week. We use a sticker-chart, and instead of junk, they get money for each sticker. And, as I give them their money, they have the option of putting some in a savings or spending it. They know that that's all the money they have, so to spend wisely.

But, children learn by example. It doesn't matter if you tell your children to count their money, etc, if you don't do it yourself. Spending is a learned behaviour.

My children are given .50 cents for each year of their age for allowance each week. But they have a chart on the refrigerator that they have to check off each day when they've completed that task - no checks, no allowance (whether they did the chore or not). It works really well. They have 3 plastic containers in their rooms: one is marked 'tithes' and 10 percent goes in there for church; one is marked ' savings' and 25 percent goes in there; and the last one is marked 'spending' and the final 65 percent goes in there. When Christmas or summer camp comes around each year, they are allowed to take money from their savings. It still amazes me every year to see how excited they are about buying gifts with their own money. I was never taught how to save or budget and I've paid dearly for it - I don't plan on making that mistake with my children.